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 AWB accuses grain handlers of stifling competition 

AWB accuses grain handlers of stifling competition

16 Feb, 2010 11:37 AM
MAJOR grain companies face accusations from wheat exporter AWB that they have used their market power to lock rival wheat companies out of their port and rail facilities, stifling competition for the $5 billion trade and undermining deregulation of the industry.

The former monopoly wheat exporter says that CBH, Graincorp and Viterra (formerly ABB Grain) are emerging as regional monopolies, using their ownership of export infrastructure to disadvantage rivals, The Australian Financial Review reports.

But the three big grain handlers reject the claims and are seeking further deregulation of wheat exports, which the government opened to new players from mid-2008 after removing AWB's "single desk" status.

They have urged the government to relax rules governing their accreditation as wheat exporters and regulating rivals' access to their ports.

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Date: Newest first | Oldest first
This mob is becoming very dangerous !
Posted by tigerdicky, 16/02/2010 11:44:42 AM
Growers warned the Government that this would happen. We must return to a national pooling arrangement to be owned and controlled by growers. We will also need underwriting by the Government. The bulk handlers will always do what suits them in a deregulated market. The Government and Liberal party had ideas that were great on paper but a disaster in practise.
Posted by Realist, 16/02/2010 2:17:35 PM
What a joke-AWB bitching about local monopolies. They had a national monopoly and locked everbody else out of the export market for years.
Posted by Observer, 16/02/2010 2:33:34 PM
Observor, That was not a monopoly but rather a co-operative marketing arrangement with an obligation to maximise grower net returns. The Pool was able to provide a counter levering power. Growers are now totally at the mercy of large corporations.
Posted by Realist, 17/02/2010 5:01:55 AM
Didn't take long did it. Wait until one of them goes overhead and then the poo will hit the fan. Yep you guys are right. As growers your power, control and safety has gone... well almost. All for paying a Jordanese trucking company $40/ton to shift grain all over Iraq, remembering 60%+ of that country's railways were destroyed in the Gulf War.
Posted by Will, 17/02/2010 5:26:45 PM
Corporations? I'll give you corprations. It is time for the people to stand up to the tyrants among us, be they politicians or faceless corporations. A corporation -- a legal fiction -- can live forever, collects enormous wealth, and has no morals, no conscience, and no need for clean air, water, or food. Corporate owners and officers must be held liable for the harms they cause. The economic, environmental and human costs of corporate power and wealth are staggering. From the destruction of rainforests to the profits of war to toxic waste dumps to the mad science of genetically modified foods to global warming, the frenzied, cancerous quest for money knows no limits in terms of human suffering and planetary destruction. To put the above remarks into historical context consider the following quotes. "I hope we shall crush in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country." - Thomas Jefferson President of the United States, 1812.
Posted by john ward, 17/02/2010 10:41:33 PM
This is what the bookworms call "The Free Market".
Posted by Ted O'Brien, 18/02/2010 9:26:09 PM

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